President Visits a Manufacturer, Talks Taxes

By October 25, 2010Small Business, Taxation

From the White House, via Politico, a preview of the President’s first stop in Rhode Island this afternoon.

American Cord & Webbing is a manufacturer that makes cords, buckles and plastic and metal hardware for sporting goods, outdoor goods, and travel gear.

Though American Cord & Webbing was hit by the economic downturn and forced to lay off some workers in 2009, they invested in new product development to pursue new customers and over the course of the past year they have brought all of their former laid-off employees back. American Cord and Webbing currently has 47 employees and plans on hiring more. And last month, the company was approved for an SBA loan that will help the company expand its Woonsocket facility, going from 30,000 sq. ft. to 43,000 sq. ft. by next spring.

At the event on Monday, the President will discuss American Cord & Webbing’s success story, and highlight how businesses like this one can benefit from the Small Business Jobs Act that the President fought to pass and signed in September.

And yet current tax rates on personal income — the rate at which many small businesses are taxed — lowered in 2001 and 2003 are due to expire at the end of this year, which means the top rate would rise from 35 percent to 39.6 percent. Making additional government-supported credit available to small businesses is just a little dash of sweetening when the full dish of broken glass is about to go down.

Vice President Biden last week indicated the White House might be willing to compromise on the top bracket, and it’s conceivable the President this afternoon may offer more details. Probably not, though.

Aides downplayed Biden’s comments Saturday, saying the vice president has said nothing different than what the Obama administration has maintained throughout the debate: The tax cuts must be extended on middle-class households before considering tax breaks for the wealthy.

Join the discussion One Comment

Leave a Reply